THAI tackles financial woes

[Thai at Heart]

http://en.m.wikipedia.org/wiki/List_of_Airbus_A300_operators

This is funny. Of all the airlines operating the A300 with large numbers. Thai Airways and couriers are among the largest purchasers. Aren't they a little fuel thirsty?

Who was CEO when Thai bought all these planes, 18 of which are now mothballed. Very poor decison making, but Airbus always was very generous, if u know what I mean.

Weren't some of these caught in the floods in DMK?

Edited December 24, 2014 by Thai at Heart

[bubba]

Thai Airways have 33 aircraft sitting in storage and likely will never be used again. This story says that TG plan on selling off "more that ten" aircraft. That would leave 23 or so in storage, rusting away, costing money to store and becoming less valuable.

http://www.airfleets.net/flottecie/Thai%20Airways.htm

So they would rather borrow money than sell off stored aircraft? Trying to keep the assets side of their balance sheet pumped up or what?

Since you are apparently so well informed about the exact plans, please share with us what you know.

"More than 10" could include up to 33 - though it's more than likely that they are considering repurposing some of the 23 other planes for domestic routes, which the CEO has stated they would increase the frequency of. That means, using more planes. Hence, most likely bringing the existing planes out of mothballs.

There is no indication that he is planning to let the remaining planes rot - if they are able to sell around 10 planes (ie they are flight worthy) then the remaining planes can be made so as well. Your speculation is invalid.

No need for sarcasm, Daffy. I was only quoting the story. I defer to your speculation.

[Thai at Heart]

Thai Airways have 33 aircraft sitting in storage and likely will never be used again. This story says that TG plan on selling off "more that ten" aircraft. That would leave 23 or so in storage, rusting away, costing money to store and becoming less valuable.

http://www.airfleets.net/flottecie/Thai%20Airways.htm

So they would rather borrow money than sell off stored aircraft? Trying to keep the assets side of their balance sheet pumped up or what?

Since you are apparently so well informed about the exact plans, please share with us what you know.

"More than 10" could include up to 33 - though it's more than likely that they are considering repurposing some of the 23 other planes for domestic routes, which the CEO has stated they would increase the frequency of. That means, using more planes. Hence, most likely bringing the existing planes out of mothballs.

There is no indication that he is planning to let the remaining planes rot - if they are able to sell around 10 planes (ie they are flight worthy) then the remaining planes can be made so as well. Your speculation is invalid.

No need for sarcasm, Daffy. I was only quoting the story. I defer to your speculation.

A few years ago they put all 23 up for market. So just as well they didn't sell them so that the current CEO can use them to.mop up all this extra business surely coming their way.

[bubba]

http://en.m.wikipedia.org/wiki/List_of_Airbus_A300_operators

This is funny. Of all the airlines operating the A300 with large numbers. Thai Airways and couriers are among the largest purchasers. Aren't they a little fuel thirsty?

Who was CEO when Thai bought all these planes, 18 of which are now mothballed. Very poor decison making, but Airbus always was very generous, if u know what I mean.

Weren't some of these caught in the floods in DMK?

Back in the day, such as A300s were not really fuel guzzlers compared to other aircraft and Airbus sold more than 500 of them, including TG of course. They were the first twin engine widebody passenger aircraft when they began rolling out in 1972 and actually consumed less fuel/seat than the other wide bodies at the time.

The more recent A340-500s (as well as the -600s) are true fuel guzzlers and were largely purchased for the BKK-JFK-BKK nonstop that only lasted a couple of years. TG's -500s are now only 6 - 9 years old and are in storage, and most of them have been for some years. Unfortunately, the A340s are not very easy to sell now, but who knows with the price of fuel coming down.

[Jay Sata]

Needs a lot more than that. We're talking a serious purge/restructure/re-branding. It is so far behind the competition today and the prices are completely unrealistic -- more than 50% more expensive than BA to London.

I agree 100%.

With sites like Skyscanner highlighting the uncompetitive fares Thai have no chance unless they start to react to the market.

Emirates,Eva and others offer great prices and service.

Thai fail on both counts.

[DaffyDuck]

Unfortunately, the A340s are not very easy to sell now, but who knows with the price of fuel coming down.

Easier to sell to middle-eastern / UAE airlines for domestic and regional service - these carriers practically pay nothing for fuel, so fuel economies are irrelevant as long as the flights are regional within the UAE or affiliates.

[bubba]

Unfortunately, the A340s are not very easy to sell now, but who knows with the price of fuel coming down.

Easier to sell to middle-eastern / UAE airlines for domestic and regional service - these carriers practically pay nothing for fuel, so fuel economies are irrelevant as long as the flights are regional within the UAE or affiliates.

At least with Emirates, I know they pay the same price for fuel as other carriers at a world market price, even inside UAE. Their fuel is about 35% of operating cost, just like the other major carriers. If you are thinking of cheap petrol costs in Gulf countries, that is because of government subsidies, and Emirates insists that they do not receive subsidies of any kind.

As for flights within UAE, well, there are not that many airports within UAE and they are not far from one another. The two biggest cities are Dubai and Abu Dhabi, and those are easily done in a few hours by car. But as for other Gulf countries, I have been on a 90 minute A380 flight between DXB and KUW, and it was packed. I just don't think you will find many buyers in the Gulf for old, fuel inefficient aircraft with high maintenance costs, apart from maybe a prince here and there.

Sorry...getting off topic here!

[Thai at Heart]

Unfortunately, the A340s are not very easy to sell now, but who knows with the price of fuel coming down.

Easier to sell to middle-eastern / UAE airlines for domestic and regional service - these carriers practically pay nothing for fuel, so fuel economies are irrelevant as long as the flights are regional within the UAE or affiliates.

At least with Emirates, I know they pay the same price for fuel as other carriers at a world market price, even inside UAE. Their fuel is about 35% of operating cost, just like the other major carriers. If you are thinking of cheap petrol costs in Gulf countries, that is because of government subsidies, and Emirates insists that they do not receive subsidies of any kind.

As for flights within UAE, well, there are not that many airports within UAE and they are not far from one another. The two biggest cities are Dubai and Abu Dhabi, and those are easily done in a few hours by car. But as for other Gulf countries, I have been on a 90 minute A380 flight between DXB and KUW, and it was packed. I just don't think you will find many buyers in the Gulf for old, fuel inefficient aircraft with high maintenance costs, apart from maybe a prince here and there.

Sorry...getting off topic here!

I always understood that jetfuel was free of duty. I mean if it wasn't a ticket on British airways would be 5000 GBP for a domestic ticket.

[bkkrox]

Somebody needs to tell him that TG stopped flying to Phitsanulok years ago, so no need to cut that route !

[Ricardo]

Somebody needs to tell him that TG stopped flying to Phitsanulok years ago, so no need to cut that route !

But dare they tell him ... and risk their jobs ?

A cynic might suppose that the management already try, on a regular ongoing-basis. to match capacity to demand on their various routes ?

And that with the fleet-renewal plan underway, THAI were already planning to sell some of their older planes, next year.

But how then would the Board demonstrate, if not for fatuous statements of the obvious or previously-announced, that they were having any effect at all ?

Perhaps it's time for the chaps to go on a five-star first-class study-tour, to see how these things are done, in other airlines ?

[DaffyDuck]

At least with Emirates, I know they pay the same price for fuel as other carriers at a world market price, even inside UAE. Their fuel is about 35% of operating cost, just like the other major carriers. If you are thinking of cheap petrol costs in Gulf countries, that is because of government subsidies, and Emirates insists that they do not receive subsidies of any kind

Emirates insist on many things. It's called 'lying'. It's a common strategy.

[bangon04]

http://en.m.wikipedia.org/wiki/List_of_Airbus_A300_operators

This is funny. Of all the airlines operating the A300 with large numbers. Thai Airways and couriers are among the largest purchasers. Aren't they a little fuel thirsty?

Who was CEO when Thai bought all these planes, 18 of which are now mothballed. Very poor decison making, but Airbus always was very generous, if u know what I mean.

Weren't some of these caught in the floods in DMK?

Perhaps they could bring out some of the mothballed planes which have functioning in flight video systems. Out of the last 8 flights with THAI, 6 flights either the system was partially faulty (broken headphone sockets, offline screen etc) or the whole system was unavailable. On three occasions the cabin crew recited the same Thai - sorry sir it will be back in 10 minutes, then avoided eye contact for the rest of the flight.

We can only hope they service the hydraulics more carefully than the IFE.

[EyesWideOpen]

I think I found the problem.... Cartoon from Stephff in Bangkok.

Edited December 24, 2014 by EyesWideOpen

[JOC]

>>THAI is also concerned about the falling oil prices and will see how to deal with them in the long term. Hedging on jet fuel may need to be revised.<< Quote

Has to be the most strange comment ever!!

All their competitors are jubilant over the low fuel prices, But THAI is complaining??

Hedged wrong again??

Last time the fuel prices dropped, THAI was hedged terribly wrong.

Guess we are seeing a repeat performance. Easy to play the casino, when it is not your money!!

[EyesWideOpen]

>>THAI is also concerned about the falling oil prices and will see how to deal with them in the long term. Hedging on jet fuel may need to be revised.<< Quote

Has to be the most strange comment ever!!

All their competitors are jubilant over the low fuel prices, But THAI is complaining??

Hedged wrong again??

Last time the fuel prices dropped, THAI was hedged terribly wrong.

Guess we are seeing a repeat performance. Easy to play the casino, when it is not your money!!

Funny stuff...... " OMG , fuel prices are falling. What in the world can we do to try and stop

that ??"

[bangon04]

>>THAI is also concerned about the falling oil prices and will see how to deal with them in the long term. Hedging on jet fuel may need to be revised.<< Quote

Has to be the most strange comment ever!!

All their competitors are jubilant over the low fuel prices, But THAI is complaining??

Hedged wrong again??

Last time the fuel prices dropped, THAI was hedged terribly wrong.

Guess we are seeing a repeat performance. Easy to play the casino, when it is not your money!!

Funny stuff...... " OMG , fuel prices are falling. What in the world can we do to try and stop

that ??"

Yes the foreigners are messing it up for us again.....